July 30 (Reuters) - Refiner Phillips 66 reported

quarterly results that beat analysts' estimates, helped in part

by strength at its midstream and chemicals units and higher

processed volumes, even as it grappled with lower margins due to

a tepid summer driving season.

Refiners process crude oil into gasoline, diesel, jet fuel

and other products. They ramped up processing capacity to 93.5%

in the second quarter, compared with 91% in the same period last

year, according to the U.S. Energy Information Administration,

on expectations of an uptick in demand that did not materialize.

While Phillips 66's crude capacity utilization stood at 98%

in the second quarter compared with 93% a year earlier, the

company's realized margins fell to $10.01 per barrel from

$15.32. The refining segment's earnings slumped 74.3%.

Last week, rival Valero reported a lower

second-quarter profit but also managed to beat earnings

estimates as strong processing volumes offset a slump in

margins.

On an adjusted basis, Houston-based Phillips 66 earned $2.31

per share for the quarter, beating estimates of $1.98, according

to LSEG data.

Income from the company's midstream segment rose 23.7%, and

increased 15.6% for the chemicals unit.

Phillips 66's renewable fuels segment posted a loss of $55

million, compared with a profit of $68 million last year, amid a

glut in renewable diesel production capacity in the United

States.